The North contributes 19 percent to the national economy, compared to 13 percent for Scotland, Wales and Northern Ireland combined, according to a new report from the think tank IPPR North just published.
The report shows that in the decade to 2012 the North grew at a slower rate, with the devolved nations spending far more per head on boosting their economies through R&D, skills and infrastructure investment. As the independent think tank IPPR North celebrates its 10th birthday it renews calls for increased infrastructure spending in the North, devolution of power to city and county regions, and strengthened local democracy so that the North can fulfil its untapped potential.
The report shows that over the past decade government spending on economic affairs has been highly skewed towards London and Scotland. IPPR North has led the way in highlighting how regions like the North East lose out on transport investment, with planned spending per head at £245 compared to London’s £4,893. The report further shows that while manufacturing still remains key, making the largest contribution to the northern economy, new northern growth businesses have come from sectors like property, and financial and professional services, while Northern universities have pioneered major developments in technologies such as graphene and the biomedicine.
The report also notes that there have been other success stories in the North of England over the last 10 years too: In the decade to 2012, the fastest growing local economies (Local Enterprise Partnership areas) in the North were Cumbria (46 percent) and Cheshire & Warrington (43 percent) followed by the city-regions of Greater Manchester (42 percent) and Sheffield (41 percent). The major city-regions (LEP areas) of the North are driving jobs growth – since 2010 jobs in Sheffield have increased by 4.0 percentand in Greater Manchester by 3.4 percent – twice the rate of jobs growth in the north as a whole (1.8 percent)
However, the report highlights that there is more to do. Since the beginning of the recession the North as a whole has fallen behind the rest of the UK with growth and employment levels only just returning to pre-recession levels. Ed Cox, Director of IPPR North, said: “The North’s potential is starting to be recognised. While there have long been calls for a rebalancing of the UK economy, the evidence that more closely connected northern cities will bring significant economic benefits for the whole nation is now clear. Our maxim, ‘northern prosperity is national prosperity’, has become common currency in the corridors of Whitehall and in city and town halls across the north.
“In 10 years’ time, with the right leadership and with a revitalised local democracy, there is no reason why the north of England shouldn’t take its place alongside the most prosperous Northern European regions. But if that is to happen more needs to be done to develop good policy ideas which can be taken up by the politicians. That’s why I’d like to see other think tanks on the IPPR North model set up in cities like Manchester, Leeds and Newcastle. At present, UK think tanks are too focused on central government in London.”
